The Federal Election has been run and won, with Labor increasing it’s majority in the House Of Representatives.

This emphatic win gives the government a clear mandate to press ahead with some of the most significant reforms to the aged care sector in decades.

So what does this mean for the aged care sector?

Aged Care Act

A new Aged Care Act will commence on 1 July 2025. The new act is designed to replace outdated laws and put the rights of older Australians front and centre. Key features of the new act include:

• A new statement of rights for everyone accessing aged care
• A simple, more transparent way to access services
• Fairer assessment processes across the board
• Stronger procedures to hold providers to account for the care they offer.

Home care packages

From July 2025, the new Support At Home program will replace existing home care packages. The aim is to make it easier for older Australians to access the support they need when they need it.

The new model aims to make it simpler to navigate services, offering:
• One clear set of rules
• Tailored support to better match individual goals and preferences.

Changes to aged care fees

Recognising that many aged care providers are currently struggling to make a profit, the government has introduced several changes to aged care fees. These include:

Refundable Accommodation Deposit

When someone enters aged care, they often pay a lump sum called a Refundable Accommodation Deposit (RAD). In the past, most of this money was returned to the family when the person left care or passed away — unless specific deductions were agreed to.

Under new rules, aged care homes can now keep 2% of the RAD each year, for up to five years. This means they can retain up to 10% of the total deposit. So, families may get back less money than before when the RAD is refunded.

Non-Clinical Care Contribution

A new fee, called the Non-Clinical Care Contribution, has replaced the Means-Tested Care Fee. It helps cover everyday services like social activities, emotional support, and admin costs — things that aren’t medical.

The amount you pay depends on your income and assets. It’s capped at $101.61 per day, and you won’t pay more than $130,000 total or for more than four years, whichever comes first.

Hotelling Supplement

This is a brand-new fee to help cover daily living costs like meals, laundry, and cleaning — on top of the basic daily fee.
It’s means-tested, so people with more income or assets will pay more. The maximum amount is $12.55 per day.

Funding commitments

Labor has committed $292 million to the next stage of aged care reform. This includes a clear focus on improving regulation, access and support for culturally safe care.

Some of the key measures include:
• Expanding the aged care quality and safety commission
• Supporting a new, unified Single Assessment System
• Funding more First Nations Organisations to lead culturally appropriate assessments
• Boosting support for cooperative care models through the Care Together Program.

The Albanese Government’s re-election sets the scene for major changes in the aged care sector over the coming months.

Have you ever considered a career in aged care? Working in aged care offers the opportunity to make a positive difference in the lives of others.

Are you looking for a new career? Aged Care Resumes can help. We are pleased to offer various services including our resume writing service and selection criteria writing service.

Article References

Pitcher Partners (6 May 2025) ‘Understanding the upcoming changes to aged care fees’, Pitcher Partners, accessed 12 May 2025.

McManus, D (6 May 2025) ‘What Labor’s win means for aged care’, Aged Care Guide, accessed 12 May 2025.